Summary:

Value chain is a sequence of activities that flow from raw materials to delivery of product or service. Value chain in oil industry extends from exploration and production of crude oil and natural gas up to sales of refined products. Refineries play a key important in the supply chain of an oil company, as it is where crude oil is processed into refined products. The emphasis of this work is on Statoil Mongstad. Statoil Mongstad is a refinery located at Mongstad. In order to get overview of Statoil Mongstad’s value chain, this thesis describes and discusses Statoil Mongstad’s organisation structure, production processes, costing and pricing principles and policies, and finally its supply chain.